Question

what are the differences between retrospective and prospective methods of reimbursement ? (300 words)

Answer 1

Differences between retrospective and prospective methods of reimbursement:

The difference between these two can be clearly understood by the following table:

Retrospective method of reimbursement	Prospective method of reimbursement
This meant that physicians and other health care providers received payment for actual charges after health care services were provided	A system where the reimbursement is made to the provider based on a predetermined reimbursement level rather than on actual charges after the services
It is based on the services taken, length of stay as well as the cost of every service	It is based on the diagnosis or other methods measuring resource inputs
Physician or provider bills for each service or visit instead of on a prepaid	These payment rates may be adjusted periodically to account for inflation, Each health-care provider receives the same payment for each treatment of the same type.
A system wherein reimbursement is made to providers after health care services have been given.	Prospective payment plans assign a fixed payment rate to specific treatments based on predetermined factors.